Naira Gains as Nigeria’s Foreign Reserves Top $51 Billion
The Naira appreciated against the US dollar by about 0.10% to N1369 in the Nigerian foreign exchange market (NFEM) amidst growing external reserves.
In its daily FX update, the Apex Bank indicated that the official rate closed at N1369.1064 per US dollar, from N1370.4556 in the previous close.
International transactions were executed between N1368 and N1373 per dollar during the trading session, reflecting an improved liquidity condition in the forex market.
Interbank FX turnover increased sharply to $65.206 million, up by more than 63% from the previous close of $39.897 million, according to data published by the Central Bank of Nigeria (CBN) today.
The local currency market experienced improved FX liquidity despite the absence of CBN intervention over the past six weeks. Nigeria’s foreign reserves surged to $51.060 billion, its highest since 2009.
FX reserves gained traction as a result of lower oil imports, high crude oil prices in the global commodity market, and a surge in the nation’s production output.
Brent oil futures turned negative on Monday after mediators Qatar and Pakistan said that U.S. and Iranian officials had agreed on a roadmap to reach a final deal within 60 days. Oil prices later traded around session lows after the Treasury Department authorised the sale of Iranian oil for 60 days.
International benchmark Brent crude futures for August fell more than 3% to around $77 a barrel. U.S. West Texas Intermediate futures for July were more than 2% lower at roughly $74. Naira Tumbles as Interbank FX Turnover Drops by 43%
